Sun Sep 20 2020
Only 1 in 5 charities are correctly complying with official rules of how to report on fundraising
According to official figures just published by the Fundraising Regulator, only 21 of charities are including all the required information on their annual fundraising reports.
The law clearly states that any charity with an annual income of over £1m must include a statement on fundraising in their annual report, which has to include six aspects on their approach to fundraising.
The Charities Act of 2016 sets out that fundraising statements must includes:
In an analysis conducted of 187 annual reports, from a range of different sized NonProfits, the Fundraising Regulator found that whilst 81% of charities had included a fundraising statement in their annual report, only 21% had provided all the required detail.
67% included information on their regulatory scheme, 59% included details on complaints but only 41% and 40% respectively gave information on third party fundraising and protecting vulnerable people.
In response to this, the Fundraising Regulator has updated its guidance to aid charities that need to report on their fundraising activities.
A similar report was commissioned by the Fundraising Regulator back in January which found that 60% of reports submitted for 2019 contained Statements on Fundraising with little or incorrect information.
Overall, there is little improvement on year one. Although there is still work to do to achieve compliance with the reporting requirements, it’s positive to see most charities reporting on their fundraising approach, thereby demonstrating their commitment to transparency. As we approach year three of these reporting requirements, I urge charities and trustees to read our guidance, not only because the law requires these areas to be reported on, but most importantly because this gives supporters more information about charities’ fundraising activities. We remain committed to working with the sector to achieve comprehensive, detailed reports and our updated guidance is designed to help facilitate this.
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Sun Sep 20 2020